ID :
28570
Wed, 11/05/2008 - 10:10
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Shortlink :
https://oananews.org//node/28570
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RM7 BILLION TO STIMULATE ECONOMY
KUALA LUMPUR, Nov 5 (Bernama) -- The Malaysian government on Tuesday
announced a RM7 billion stimulus package to reinforce the economy, strengthen
national resilience and to maintain economic growth momentum to face the
increasingly challenging global economic climate.
Deputy Prime Minister Najib Razak said measures pronounced in the package
was proof of the government's serious concern for the people's well-being and to
stimulate private sector confidence.
The RM7 billion saved from the fuel subsidy will be channelled to enable
more people to own houses, said Najib, who is also Finance Minister, said when
winding up the debate on the 2009 Budget in the Lower House of
Parliament.
To ensure more people can afford to own houses, he said, RM1.2 billion has
been allocated to build 25,000 units of low-and medium-cost houses.
Also, RM500 million has been set aside to upgrade, repair and maintain
police stations, living quarters, army camps and quarters, he said.
Najib also said RM600 million would be channelled to minor projects under
the public and basic infrastructure project maintenance programme.
These include maintaining village roads, building community halls and small
bridges, he said.
The Deputy Prime Minister said the allocation would help small-time
contractors to address the problem of shortage of construction projects.
He said RM500 million has been apportioned to repair and maintain public
amenities such as roads, schools and hospitals and another RM500 million has
been sanctioned to build and upgrade roads in rural areas, villages and
agriculture roads including in Sabah and Sarawak, both East Malaysia
states.
Najib also said the Gross Domestic Product (GDP) would be revised downwards
to 3.5 percent for 2009 from five percent this year.
Under the additional allocation, 25,000 houses will be built.
They comprise:
*6,500 houses by Syarikat Perumahan Negara Bhd;
*4,000 houses under the People's Housing Programme by the Housing and Local
Government Ministry;
*15,000 houses costing between RM30,000 and RM35,000 each in Peninsular
Malaysia and between RM35,000 to RM40,000 in Sabah and Sarawak to be built by
the Rural and Regional Development Ministry.
These houses will be built under the Hardcore Poor Housing Programme by the
Rural and Regional Development Ministry.
On the average, 100 houses for the hardcore poor will be built in every
district nationwide, he said.
Under the Amal Jariah programme handled by Prokhas, a subsidiary of the
Finance Minister Incorporated, old and dilapidated houses of the hardcore poor
will be repaired so that they can live in comfortable and safe houses.
Under the programme, launched early this year, 7,000 houses have been
repaired at a cost of RM40 million.
In 2009, Prokhas will repair 15,000 houses while Khazanah Nasional Bhd will
coordinate initiatives by government-linked companies to implement the Sejahtera
programme to repair 5,000 houses.
Khazanah Nasional Berhad is the investment holding arm of the Government
of Malaysia entrusted to hold and manage the commercial assets of the government
and to undertake strategic investments.
To facilitate low-income earners who do not have permanent income to get
housing loans, the government has set up Housing Credit Guarantee Scheme for
housing loans up to RM100,000.
Since its launch, 800 borrowers, including petty traders, farmers and
fishermen have had their loans approved totalling RM35 million.
In recognition of the role played by armed forces personnel and to care for
their welfare, the government has allocated RM500 million to upgrade, repair and
maintain police stations, living quarters, camps and military quarters.
He said RM250 million has been set aside for the police and another RM250
million for the defence forces.
The projects will be implemented immediately because the government feels
the welfare of the security forces must be given priority.
A total of RM600 million has been allocated for minor projects under the
public and basic infrastructure maintenance programme. These include maintaining
village roads, building community halls and small bridges.
Najib also said the inflation rate in 2009 is expected to be at between
three and four percent if fuel prices remain at the current downward trend.
He said the government's fiscal deficit for next year was still under
control, at 4.8 percent as the government had chosen to draw up a budget that
maintains economic growth momentum.
He said the deficit level was the same as the 2009 projected deficit.
"The 4.8 percent deficit is temporary, within the reasonable range, as the
country had sufficient liquidity to borrow from internal sources," he said.
He said the government would adopt the "expansion" policy as being
practised by other countries currently.
Beginning February 2009, Najib said biodiesel will be used, starting with
government vehicles, followed by the industrial and transport sectors.
It is estimated that 500,000 tonnes of palm oil a year is needed when it is
fully implemented in early 2010, he said.
To reduce cost of agriculture inputs, especially fertilizer, the government
has agreed to abolish the five percent import duty imposed on seven types of
fertilizers.
This is in addition to the abolition of import duty on one fertilizer in
the 2009 Budget.
With this move, all imported mineral fertilizers are no longer subjected to
import duty, Najib said.
In tandem with the reduction in crude oil prices, the fertilizer
manufacturing industry has agreed to help government efforts to cut down
fertilizer prices by at least 15 per cent immediately, he said.
Najib said the 2009 Budget took into account and projected the
challenging
global scenario for next year.
Nevertheless, sudden changes in the global economic scene of late have
warranted the government to take proactive measures to insulate the economy
from the global economic turmoil and financial meltdown.
"This extraodinary time requires extraordinary measures", he said.
"It must be stressed that the total expenditure amount mentioned in the
2009 Budget has not changed. The fund used for the additional measures is money
saved from the fuel subsidy," he said.
Under the strategy to implement expansionary fiscal policy, Najib said the
government would review all projects with a view to giving priority to projects
that can be implemented immediately and have high multiplier effects and low
import content.
This will be implemented without affecting the development expenditure
allocated for 2009, he said.
For instance, the government has deferred the procurement of helicopters
for the Defence Ministry and Home Ministry so that the money can be used for
other development projects, he said.
To further upgrade the education system and taking into account the wishes
of all races, the government will allocate RM200 million for four categories of
schools -- RM50 million each for government-aided religious schools, mission
schools, Chinese primary schools and Tamil schools.
He said RM300 million has been allocated to set up a fund to implement
skills training programme to meet employers' and industries' requirements
especially in the regional development corridors.
The government will allocate another RM500 million to maintain and
strengthen the public transport system particularly the light rail transit
systems, commuter and bus services in major towns as the cost of living in urban
areas was high including to pay for transportation cost.
Najib also announced an allocation of RM1.5 billion to set up an Investment
Fund to woo more private sector investments, with focus given to strategic and
high-value sectors and high-impact projects in terms of investment value.
Najib said to revive abandoned housing projects at selected and viably
strategic areas, the government has agreed to allocate RM200 million.
He said the projects will be managed by Syarikat Perumahan Negara Bhd
(SPNB). SPNB is a wholly owned subsidiary of the Ministry of Finance
Incorporated.
The government will also allocate RM100 million to increase business
premises besides beautifying and landscaping small towns nationwide, he said.
He said this move will help increase small-and medium-scale entrepreneurs
and to market locally produced products.
This programme will be implemented by Mara under the Entrepreneur and
Cooperative Development Ministry, he said.
To produce a better quality future generation, Najib said RM200 million
will be set aside for early education for children aged between one and six.
"This includes programmes such as PERMATA Negara, Kemas and Unity
kindergartens and pre-school classes," he said.
Najib said the government will set up a Project Management Unit through
the
Finance Ministry to monitor and coordinate implementation of critical and
high-impact projects to ensure efficient and effective implementation.
"This is because the government realises that given the uncertainties
in
the global economic climate, the swiftness to act in implementing the programmes
is very critical.
"Focus will be given to projects with high multiplier effects to stimulate
economic growth," he said.
The unit comprising senior government officials, regulatory bodies and
government-linked companies will report straight to the Finance Minister, he
said.
Najib said the government proposed to use a new method by calling for open
tenders involving the private sector and government-linked companies (GLCs) to
develop parcels of land at strategic locations.
"If the development concept can be implemented, the government is expected
to earn substantial revenue," he said.
He said the government would identify assets in the form of strategic land
that can be offered through this initiative including Malaysian Rubber Board
land in Sungai Buloh, government land at Jalan Cochrane and Jalan Ampang Hilir
in Kuala Lumpur, Najib said.
The government is also confident that an increased number of 110,000 people
would be able to receive welfare aid as announced in the 2009 Budget.
Najib said the government would allow workers to reduce their Employees
Provident Fund (EPF) contribution voluntarily by three percent from Jan 1, 2009
to increase the disposable income.
EPF is a government organisation in charge of social security or retirement
planning for legally employed workers in Malaysia.
To make it easier for government servants to own cars, the government would
increase the car loan eligibility to RM60,000-RM70,000 for the top management
group, RM55,000-RM65,000 for Grades 41 to 54 and RM45,000-RM55,000 for the
support group.
Civil servants who already have housing loans, now have the option of
extending the tenure of their loans to 30 years from 25 years before.
The government will also liberalise the service sector under the Asean
Free Trade Area (AFTA) allowing up to 70 percent equity in 2015.
Among the sectors that will be liberalised include logistics, specific
activities in the telecommunications sector, private hospital services and the
higher learning sector.
To boost private sector activities, the government would abolish the import
duty for cement, long iron and steel products for the construction and
manufacturing sectors.
"Besides this, all approved permits (APs) for long iron and steel products
will be exempted. The move will assist government efforts in boosting
construction activities," he said.
The government would also allow foreigners and foreign entities to buy
commercial properties worth RM500,000 or more without any approval from the
Foreign Investment Committee (FIC), on condition the property is for personal
use.
"The move is aimed at encouraging investment, especially in the country's
property sector," said Najib.
Work permits given to employers currently would be given directly to
the workers to facilitate the intake of knowledge workers, he said.
The Deputy Prime Minister said the government would also hasten the intake
of government employees for critical posts badly needed in the civil service.
Currently, there are 18,000 vacancies for critical posts in the public
sector.
Najib said Malaysian Central Bank would make available micro-credit
facilities amounting to RM200 million to assist entrepreneurs undertaking small
businesses.
The government would also make available a RM100-million revolving fund for
the urban micro financing programme.
The programme is placed under the Amanah Ikhtiar Malaysia following the
success of a similar programme in rural areas, said Najib.
Amanah Ikhtiar Malaysia (AIM) is Malaysia's largest Microcredit
organization.
The government would also ensure that a major portion of the government
procurement would be made through open and restricted tenders to further
smoothen the procurement process and make it more transparent and value for
money, he said.
Procurement for Bumiputera contracts would also be tendered through
competitive bidding among Bumiputera (son of earth) companies, said Najib.
In efforts to face the challenging economic environment, the Deputy Prime
Minister urged the people to join hands with the government to cope with the
current crisis.
"We need to learn from our past experiences, where we have succeeded in
riding out every crisis through the people's unity and close cooperation," he
added.
-- BERNAMA
announced a RM7 billion stimulus package to reinforce the economy, strengthen
national resilience and to maintain economic growth momentum to face the
increasingly challenging global economic climate.
Deputy Prime Minister Najib Razak said measures pronounced in the package
was proof of the government's serious concern for the people's well-being and to
stimulate private sector confidence.
The RM7 billion saved from the fuel subsidy will be channelled to enable
more people to own houses, said Najib, who is also Finance Minister, said when
winding up the debate on the 2009 Budget in the Lower House of
Parliament.
To ensure more people can afford to own houses, he said, RM1.2 billion has
been allocated to build 25,000 units of low-and medium-cost houses.
Also, RM500 million has been set aside to upgrade, repair and maintain
police stations, living quarters, army camps and quarters, he said.
Najib also said RM600 million would be channelled to minor projects under
the public and basic infrastructure project maintenance programme.
These include maintaining village roads, building community halls and small
bridges, he said.
The Deputy Prime Minister said the allocation would help small-time
contractors to address the problem of shortage of construction projects.
He said RM500 million has been apportioned to repair and maintain public
amenities such as roads, schools and hospitals and another RM500 million has
been sanctioned to build and upgrade roads in rural areas, villages and
agriculture roads including in Sabah and Sarawak, both East Malaysia
states.
Najib also said the Gross Domestic Product (GDP) would be revised downwards
to 3.5 percent for 2009 from five percent this year.
Under the additional allocation, 25,000 houses will be built.
They comprise:
*6,500 houses by Syarikat Perumahan Negara Bhd;
*4,000 houses under the People's Housing Programme by the Housing and Local
Government Ministry;
*15,000 houses costing between RM30,000 and RM35,000 each in Peninsular
Malaysia and between RM35,000 to RM40,000 in Sabah and Sarawak to be built by
the Rural and Regional Development Ministry.
These houses will be built under the Hardcore Poor Housing Programme by the
Rural and Regional Development Ministry.
On the average, 100 houses for the hardcore poor will be built in every
district nationwide, he said.
Under the Amal Jariah programme handled by Prokhas, a subsidiary of the
Finance Minister Incorporated, old and dilapidated houses of the hardcore poor
will be repaired so that they can live in comfortable and safe houses.
Under the programme, launched early this year, 7,000 houses have been
repaired at a cost of RM40 million.
In 2009, Prokhas will repair 15,000 houses while Khazanah Nasional Bhd will
coordinate initiatives by government-linked companies to implement the Sejahtera
programme to repair 5,000 houses.
Khazanah Nasional Berhad is the investment holding arm of the Government
of Malaysia entrusted to hold and manage the commercial assets of the government
and to undertake strategic investments.
To facilitate low-income earners who do not have permanent income to get
housing loans, the government has set up Housing Credit Guarantee Scheme for
housing loans up to RM100,000.
Since its launch, 800 borrowers, including petty traders, farmers and
fishermen have had their loans approved totalling RM35 million.
In recognition of the role played by armed forces personnel and to care for
their welfare, the government has allocated RM500 million to upgrade, repair and
maintain police stations, living quarters, camps and military quarters.
He said RM250 million has been set aside for the police and another RM250
million for the defence forces.
The projects will be implemented immediately because the government feels
the welfare of the security forces must be given priority.
A total of RM600 million has been allocated for minor projects under the
public and basic infrastructure maintenance programme. These include maintaining
village roads, building community halls and small bridges.
Najib also said the inflation rate in 2009 is expected to be at between
three and four percent if fuel prices remain at the current downward trend.
He said the government's fiscal deficit for next year was still under
control, at 4.8 percent as the government had chosen to draw up a budget that
maintains economic growth momentum.
He said the deficit level was the same as the 2009 projected deficit.
"The 4.8 percent deficit is temporary, within the reasonable range, as the
country had sufficient liquidity to borrow from internal sources," he said.
He said the government would adopt the "expansion" policy as being
practised by other countries currently.
Beginning February 2009, Najib said biodiesel will be used, starting with
government vehicles, followed by the industrial and transport sectors.
It is estimated that 500,000 tonnes of palm oil a year is needed when it is
fully implemented in early 2010, he said.
To reduce cost of agriculture inputs, especially fertilizer, the government
has agreed to abolish the five percent import duty imposed on seven types of
fertilizers.
This is in addition to the abolition of import duty on one fertilizer in
the 2009 Budget.
With this move, all imported mineral fertilizers are no longer subjected to
import duty, Najib said.
In tandem with the reduction in crude oil prices, the fertilizer
manufacturing industry has agreed to help government efforts to cut down
fertilizer prices by at least 15 per cent immediately, he said.
Najib said the 2009 Budget took into account and projected the
challenging
global scenario for next year.
Nevertheless, sudden changes in the global economic scene of late have
warranted the government to take proactive measures to insulate the economy
from the global economic turmoil and financial meltdown.
"This extraodinary time requires extraordinary measures", he said.
"It must be stressed that the total expenditure amount mentioned in the
2009 Budget has not changed. The fund used for the additional measures is money
saved from the fuel subsidy," he said.
Under the strategy to implement expansionary fiscal policy, Najib said the
government would review all projects with a view to giving priority to projects
that can be implemented immediately and have high multiplier effects and low
import content.
This will be implemented without affecting the development expenditure
allocated for 2009, he said.
For instance, the government has deferred the procurement of helicopters
for the Defence Ministry and Home Ministry so that the money can be used for
other development projects, he said.
To further upgrade the education system and taking into account the wishes
of all races, the government will allocate RM200 million for four categories of
schools -- RM50 million each for government-aided religious schools, mission
schools, Chinese primary schools and Tamil schools.
He said RM300 million has been allocated to set up a fund to implement
skills training programme to meet employers' and industries' requirements
especially in the regional development corridors.
The government will allocate another RM500 million to maintain and
strengthen the public transport system particularly the light rail transit
systems, commuter and bus services in major towns as the cost of living in urban
areas was high including to pay for transportation cost.
Najib also announced an allocation of RM1.5 billion to set up an Investment
Fund to woo more private sector investments, with focus given to strategic and
high-value sectors and high-impact projects in terms of investment value.
Najib said to revive abandoned housing projects at selected and viably
strategic areas, the government has agreed to allocate RM200 million.
He said the projects will be managed by Syarikat Perumahan Negara Bhd
(SPNB). SPNB is a wholly owned subsidiary of the Ministry of Finance
Incorporated.
The government will also allocate RM100 million to increase business
premises besides beautifying and landscaping small towns nationwide, he said.
He said this move will help increase small-and medium-scale entrepreneurs
and to market locally produced products.
This programme will be implemented by Mara under the Entrepreneur and
Cooperative Development Ministry, he said.
To produce a better quality future generation, Najib said RM200 million
will be set aside for early education for children aged between one and six.
"This includes programmes such as PERMATA Negara, Kemas and Unity
kindergartens and pre-school classes," he said.
Najib said the government will set up a Project Management Unit through
the
Finance Ministry to monitor and coordinate implementation of critical and
high-impact projects to ensure efficient and effective implementation.
"This is because the government realises that given the uncertainties
in
the global economic climate, the swiftness to act in implementing the programmes
is very critical.
"Focus will be given to projects with high multiplier effects to stimulate
economic growth," he said.
The unit comprising senior government officials, regulatory bodies and
government-linked companies will report straight to the Finance Minister, he
said.
Najib said the government proposed to use a new method by calling for open
tenders involving the private sector and government-linked companies (GLCs) to
develop parcels of land at strategic locations.
"If the development concept can be implemented, the government is expected
to earn substantial revenue," he said.
He said the government would identify assets in the form of strategic land
that can be offered through this initiative including Malaysian Rubber Board
land in Sungai Buloh, government land at Jalan Cochrane and Jalan Ampang Hilir
in Kuala Lumpur, Najib said.
The government is also confident that an increased number of 110,000 people
would be able to receive welfare aid as announced in the 2009 Budget.
Najib said the government would allow workers to reduce their Employees
Provident Fund (EPF) contribution voluntarily by three percent from Jan 1, 2009
to increase the disposable income.
EPF is a government organisation in charge of social security or retirement
planning for legally employed workers in Malaysia.
To make it easier for government servants to own cars, the government would
increase the car loan eligibility to RM60,000-RM70,000 for the top management
group, RM55,000-RM65,000 for Grades 41 to 54 and RM45,000-RM55,000 for the
support group.
Civil servants who already have housing loans, now have the option of
extending the tenure of their loans to 30 years from 25 years before.
The government will also liberalise the service sector under the Asean
Free Trade Area (AFTA) allowing up to 70 percent equity in 2015.
Among the sectors that will be liberalised include logistics, specific
activities in the telecommunications sector, private hospital services and the
higher learning sector.
To boost private sector activities, the government would abolish the import
duty for cement, long iron and steel products for the construction and
manufacturing sectors.
"Besides this, all approved permits (APs) for long iron and steel products
will be exempted. The move will assist government efforts in boosting
construction activities," he said.
The government would also allow foreigners and foreign entities to buy
commercial properties worth RM500,000 or more without any approval from the
Foreign Investment Committee (FIC), on condition the property is for personal
use.
"The move is aimed at encouraging investment, especially in the country's
property sector," said Najib.
Work permits given to employers currently would be given directly to
the workers to facilitate the intake of knowledge workers, he said.
The Deputy Prime Minister said the government would also hasten the intake
of government employees for critical posts badly needed in the civil service.
Currently, there are 18,000 vacancies for critical posts in the public
sector.
Najib said Malaysian Central Bank would make available micro-credit
facilities amounting to RM200 million to assist entrepreneurs undertaking small
businesses.
The government would also make available a RM100-million revolving fund for
the urban micro financing programme.
The programme is placed under the Amanah Ikhtiar Malaysia following the
success of a similar programme in rural areas, said Najib.
Amanah Ikhtiar Malaysia (AIM) is Malaysia's largest Microcredit
organization.
The government would also ensure that a major portion of the government
procurement would be made through open and restricted tenders to further
smoothen the procurement process and make it more transparent and value for
money, he said.
Procurement for Bumiputera contracts would also be tendered through
competitive bidding among Bumiputera (son of earth) companies, said Najib.
In efforts to face the challenging economic environment, the Deputy Prime
Minister urged the people to join hands with the government to cope with the
current crisis.
"We need to learn from our past experiences, where we have succeeded in
riding out every crisis through the people's unity and close cooperation," he
added.
-- BERNAMA
